Strategy and Game Theory

Practice Exercises with Answers

  • Felix Munoz-Garcia
  • Daniel Toro-Gonzalez

Part of the Springer Texts in Business and Economics book series (STBE)

Table of contents

  1. Front Matter
    Pages i-xiii
  2. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 1-36
  3. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 85-151
  4. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 153-214
  5. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 215-271
  6. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 273-316
  7. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 317-347
  8. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 349-373
  9. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 375-451
  10. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 453-479
  11. Felix Munoz-Garcia, Daniel Toro-Gonzalez
    Pages 481-520
  12. Back Matter
    Pages 521-523

About this book


This textbook presents worked-out exercises on game theory with detailed step-by-step explanations. While most textbooks on game theory focus on theoretical results, this book focuses on providing practical examples in which students can learn to systematically apply theoretical solution concepts to different fields of economics and business. The text initially presents games that are required in most courses at the undergraduate level and gradually advances to more challenging games appropriate for graduate level courses. 

The first six chapters cover complete-information games, separately analyzing simultaneous-move and sequential-move games, with applications in industrial economics, law, and regulation. Subsequent chapters dedicate special attention to incomplete information games, such as signaling games, cheap talk games, and equilibrium refinements, emphasizing common steps and including graphical illustrations to focus students’ attention on the most relevant payoff comparisons at each point of the analysis.  In addition, exercises are ranked according to their difficulty, with a letter (A-C) next to the exercise number. This allows students to pace their studies and instructors to structure their classes accordingly. By providing detailed worked-out examples, this text gives students at various levels the tools they need to apply the tenets of game theory in many fields of business and economics. 

The second edition of the text has been revised to provide additional exercises at the introductory and intermediate level, expanding the scope of the book to be appropriate for upper undergraduate students looking to improve their understanding of the subject. The second edition also includes a new chapter devoted entirely to cheap talk games. Revised to appeal to a larger audience of instructors and students, this text is appropriate for introductory-to-intermediate courses in game theory at the upper undergraduate and graduate levels.  


game theory complete information incomplete information advanced signaling Bayesian equilibrium simultaneous move sequential move mixed strategies Nash equilibrium

Authors and affiliations

  • Felix Munoz-Garcia
    • 1
  • Daniel Toro-Gonzalez
    • 2
  1. 1.School of Economic SciencesWashington State UniversityPullmanUSA
  2. 2.School of Economics and BusinessUniversidad Tecnológica de BolívarCartagenaColombia

Bibliographic information